Warren Buffett’s Massive Load of Cash – The Government Can Barely Handle It!

Warren Buffett is making history once again—this time with taxes. The billionaire investor and Berkshire Hathaway CEO revealed in his latest shareholder letter that his company paid a record-breaking $26.8 billion in U.S. income tax last year. That’s more than any other American corporation and about 5% of all corporate income tax collected by the government in 2024.

For Buffett, who took control of Berkshire Hathaway in 1965, this milestone marks a dramatic shift. Back then, the company paid nothing in income taxes.

“That sort of economic behavior may be understandable for glamorous startups, but it’s a blinking yellow light when it happens at a venerable pillar of American industry,” he reflected. “Berkshire was headed for the ash can.”

Now, with more than $101 billion in total income tax contributions over the years, Buffett has one simple request: that the government use the money wisely.

“Spend it wisely,” he urged. “Take care of the many who, for no fault of their own, get the short straws in life. They deserve better. And never forget that we need you to maintain a stable currency and that result requires both wisdom and vigilance on your part.”

Buffett also issued a stark warning about reckless spending, reminding leaders that mismanagement could weaken the U.S. dollar.

“Paper money can see its value evaporate if fiscal folly prevails. In some countries, this reckless practice has become habitual, and, in our country’s short history, the U.S. has come close to the edge. Fixed-coupon bonds provide no protection against runaway currency.”

GEICO’s Big Turnaround

Buffett also took time to praise Todd Combs, the man behind GEICO’s remarkable comeback. Since stepping in as CEO in 2020, Combs has led the insurer to a stunning financial recovery.

GEICO’s pre-tax underwriting earnings soared to $7.8 billion in 2024, more than doubling from the previous year. The company achieved this by increasing premiums, cutting down on claims, and streamlining operations.

“GEICO was a long-held gem that needed major repolishing,” Buffett said, calling the turnaround “spectacular” but acknowledging there’s still work to be done.

Record Cash Reserves and Stock Moves

Berkshire Hathaway’s financial muscle is stronger than ever. The company’s operating income jumped 27% to $47.4 billion last year, even though more than half of its 189 businesses saw earnings dip.

Buffett and his team sold off a net $6.7 billion in stocks in the last quarter alone. For the year, they sold $143 billion worth of shares while buying just $9.2 billion—offloading a net total of $134 billion.

Unlike previous years, Berkshire didn’t repurchase any of its own stock in the fourth quarter. Its total buybacks for 2024 were just $2.9 billion, a steep drop from the $9.2 billion spent in 2023 and $7.9 billion in 2022.

The result? A cash stockpile unlike anything seen before. By the end of 2024, Berkshire was sitting on a record-breaking $334 billion in cash—or $321 billion after accounting for Treasury bill purchases. That’s nearly double the $168 billion it held at the close of 2023.

A Nod to His Successors

Buffett also had words of confidence for Greg Abel, his handpicked successor, noting that he has “vividly shown his ability to act” when investment opportunities arise.

And as always, Buffett added a bit of self-deprecating humor about his own abilities—or lack thereof—in other fields.

“Lacking such assets as athletic excellence, a wonderful voice, medical or legal skills or, for that matter, any special talents, I have had to rely on equities throughout my life.”

At 94, the Oracle of Omaha remains sharp as ever, reminding investors and policymakers alike that financial wisdom and discipline are what keep America’s economic engine running strong.